Scrutiny notice to seek specific details from taxpayers: CBDT

In order to bring down instances of harassment of taxpayers, CBDT has asked its field offices to make sure the assessment notice should contain details of specific information or documents to be furnished by the assessee.
Issuing the instruction, the Central Board of Direct Taxes (CBDT) said that while issuing the first notice, the Assessment Officers (AOs) do not convey to assessees the specific compliance requirement like production of accounts and furnishing of documents.
"In cases selected for scrutiny, it should be the endeavour of the AO that the initial notice issued under Section 143(2) of I-T Act accompany a notice... Along with the questionnaire containing details of specific document/ information/evidence that are required to be furnished by the taxpayer in connection with scrutiny assessment proceeding in their respective cases," CBDT said.

It said further that since taxpayers are required to comply with the statutory notice issued by the AO, they remain "clueless" about the information required to be submitted.
"... And their appearance before the AO does not serve any fruitful purpose except recording of their presence. This causes undue hardships to taxpayers and unnecessary wastage of their time," CBDT said.
"Since CASS (Computer Assisted Scrutiny Selection) cycles are proposed to be run well in advance now, sufficient time shall be available with the AO to go through the returns of income which have been selected for scrutiny and identify the issues which require examination," it said.

On this specific instruction, Nangia & Co Managing Partner Rakesh Nangia said: "This shall deter AOs from asking roving and general questions, causing unnecessary fear in minds of innocent taxpayers."

With the objective of providing better taxpayer services, improving ease of doing business and reducing the burden of compliance on the taxpayer, CBDT has taken a number of decisions in the recent past.
(REOPENS DCM 20)
Later in a statement, the CBDT said that in order to
reduce the pending litigation, the Direct Tax Dispute Resolution Scheme, 2016 was introduced by the Finance Act, 2016.
The scheme came into force from June 1, 2016 and was to close on December 31, 2016.

"However, in view of the representations received from various stakeholders and for the convenience of the taxpayers, the last date for availing the scheme has been extended up to 31st January, 2017," CBDT said.